This week, the Federal Reserve alluded to a rate hike in December, despite this spring's low inflation readings, and to a fear that central bankers may be unprepared for the next economic downturn.
Today, short-term interest rates are just above 1 percent, and the Fed doesn’t anticipate a rise above 3 percent until the end of 2020. MarketWatch reports that the Fed is following an inflation targeting approach, with the hope of getting inflation up to 2 percent, even though inflation has stayed lower than that since the end of the Great Recession.
“The economy is chugging along. It is not brilliant, but it is doing better than we thought it would after the hurricanes,” said Terry Sheehan, an economist at Oxford Economics. “It is not untenable to say the Fed needs to remove another increment of accommodation.”
Advertisement
Related Stories
Construction
Proven Ways to Improve Jobsite Productivity
Consider these solutions for reducing cycle time, hard costs, dry runs, rework, miscommunication, and overall inefficiencies on the jobsite
Affordability
What Are Our Affordable Housing Options? Really
There are a range of ideas out there for addressing the housing affordability crisis. And while offering more housing choices is great, which of those are truly solutions to affordability?
Business Management
Happiness and 'The Bear'
Can happiness be the core strategy of a home building business? It can ... and it probably should be
